Mark Wolper, President of The WolperOrganization,prolificproducersof television mini-series and movies,isdeveloping andproducing thesix-hour mini-series for WarnerBros.Entertainment,a Time WarnerCompany (NYSE: TWX).

The high profile television mini-series details thelifeofinfamousChicago mob boss Sam Giancana whose reinspannedthe1950's and1960's. Giancana was best known for his ties toJohnF.Kennedy andis reputed to have played a key role inhelpingKennedytake theWhite House in 1960.

Each of us is eager to build on past achievement andreachnewheightsof success. Yet each of us is also keenly awarethatwehave a lot ofwork to do to grow Zuma into a profitableCompany.Weare driven by avision of what Zuma can be in the yearsahead.Weare determined tosucceed by producing results thatearntheconfidence of distributors,producers, consumersandshareholdersin equal measure.

From the moment I was appointed to my new position,mymanagementteamand I began working to identify what needed tobedonetostrategically reposition Zuma in the market andtoenabletheCompany to reclaim its integrity in theentertainmentindustryandinvestment community. We concluded that wemustrethinkthebusiness strategy and collectively spearhead achangeofapproachacross various aspects of our business.

We believe an opportunity still exists intheentertainmentbusinesssector for a well-capitalized competitorthatpromotes thecreationand development of content,integratescomponents ofproduction,actively finances projects,exceedinglypromotes bothforeign anddomestic sales and distribution,seeksfavorablelicensing andmerchandising opportunities andfurthermitigatesrisk.

We enter the second quarter of 2007 actively working toexecuteaplanto deliver greater value forshareholders,consumers,anddistributors, and results that all of usat Zuma cantake pridein.The plan includes building shareholdervaluethroughexistingproperties and the acquisition ofadditionalentertainmentcontentproperties and/or libraries.

Zuma also looks to further develop, produce,massdistributeandlicense and merchandise the Angel Babiesanimatedproperty anditsrelated products. Zuma currently owns 100%of thelicensinganddistribution rights and is currently exploringtheoptionofobtaining a majority ownership percentage in theCompanyfromAngelBabies LLC. Our management believes that AngelBabieshasthepotential to evolve into a hit property.

The dedication and talent of our employees impresses me.Itisbecauseof these qualities that I have such confidenceinourability todeliver on our plan. I am also appreciativeoftheaccumulatedknowledge and experience of our management teamandthecontinuedguidance and support of our Board of Directors. I am confident that you will agree that it is importanttofullyandboldly addresses the challenges we face. I pledge thatyouwillseeduring the course of 2007 and beyond that wearecommittedtoexecuting our plan.

We are in the process of preparing our financialstatementforauditand announcing a record date and meeting date forourAnnualandSpecial Meeting of Shareholders.

Please contact Michael Douglas, our investor liaison,intheInvestorRelations department if you have any questions.Or,feelfree to sendme a direct e-mail by completing ourinvestorcontactform. We wantto hear from you, our shareholders.

Thank You,

Mark Savoy Chief Executive Officer Zuma Beach Entertainment, Inc.

Mark Savoy, Chairman of the Board Mark Savoy, has over 20 years of experience inthefinanceandbusiness management, as well as 18 years insecuritiestradingandbrokerage industry. From 1990 to 1992, Mr.Savoy actedaspresidentof the World Trade Consortium, aninternationaltradingcompany,and currently sits on the Board ofDirectors ofseveralpublictrading companies.

Roy Escosar, Director & Chief Financial Officer Roy Escosar is the C.F.O. of Alpine Pictures,Inc.Throughouthiscareer, he has served as Technical BusinessAdviserwithAlphaPioneer Enterprises Pte. Ltd, Singapore,Business&FinanceManager with Hobbies & Crafts, Inc.,Philippines,andExecutiveSecretary/Accountant at ChevronTransportCorporationinPascagoula, MS. While working at AlphaPioneerEnterprisesPte.Ltd., Singapore, he led a successfulbusinessproposal forsoledistribution rights in Singapore withProcter andGamble.Inaddition to that great accomplishment, Royalsorestructuredthecompensation management and total trainingplans,whichimprovedoverall productivity by 50%. On a daily basis,hemanagedcorporateand business development, finance,andmarketing/sales.Roy ispresently seeking a Master’sinAccounting &FinancialManagement at Keller Graduate SchoolofManagement in WestHills,California. For his undergraduatedegree,Roy attendedtheprestigious University of the Philippines(UP) onscholarshipandgraduated with a degree inBusinessAdministration,concentrationin Accounting.

Jason Spasaro, Director, Chief Operations Officer&Secretary Jason Spasaro joined Zuma upon its inception in 2003 andhasservedinvarious executive capacities over the past 5years.Currently,asChief Operating Officer and Corporate Secretary,heworks inliaisonwith the CEO and CFO and plays an integralroleincontinued businessplan development and focuses onthestrategicdirection of theCompany. As a RelationshipManageratComputershare Investor ServicesInc, the largest transferintheworld and the only global registry,he has guidedseveralpubliccompanies through the operationalmechanics of theirmergersandacquisitions. Jason managed the 2006$17 billiontakeoverofCanadian nickel miner Inco Limited byCompanhia Vale doRioDoce(CVRD) of Brazil. The deal transformed CVRDintotheworld'ssecond-largest mining company. Jason managedthe2005privatization of Tesma International Inc, DecomaInternationalIncand IntierAutomotive Inc by Magna InternationalInc.Thetransactions, whichwere collectively valued at$1.3billion,resulted in each entitybecoming a wholly ownedsubsidiaryof MagnaInternational Inc.Jason was the primary contactfor the2004 $2.8billion merger ofR.R. Donnelley & Sons CompanyandMooreWallace Inc, creatingthe largest printing company inNorthAmerica.Jason facilitatedthe role of a CommunicationSpecialist forthe2003 Ontario SavingsBonds campaign, which raised atotal of$3.8billion, the secondhighest sales in the historyofCanadianProvincial bond issues. In2001, Jason attained anHonorsBachelorof Commerce and a Minor ofEconomics at the MichaelG.DeGrooteSchool of Business at McMasterUniversity ofOntario,Canada.

World Arena Rugby (“W.A.R.”) istheworld'sfirstprofessional indoor rugby league. The gameitselfshowcases 14ofthe toughest men on earth battling for 52minutes inaseven-a-sideversion of rugby. W.A.R. is a bone-rattlingsportthatwill leavefans either glued to their seats or jumpingforjoy.

Rugby is one of the world's oldest full-contact,teamsportsstillenjoyed today. For over 150 years, rugby hasthrilledfanswithrugged game play. It is played by two teams ofthirteenonarectangular grass field. Learn more about the historyofrugbyonWikipedia.

Competed on artificial turf within the confines ofanindoorarena,W.A.R. offers high scoring gameswithuniqueon-the-flysubstitutions and fast, non-stop action. It isatough,physicallydemanding, electrifying competition, but mostofall,W.A.R. isfan-friendly and promotes teamwork.Individualsuperstarsexist inthe W.A.R., but all W.A.R. franchiseplayers mustworktogether towin, unlike other leagues such as theNBA, MLBandNFL.

Zuma Beach Entertainment, Inc (ZMBC.PK)recentlyannouncedthecompletion of its due diligence pertaining totheacquisitionofW.A.R. Following the completion of theacquisition,W.A.R.shallbecome a wholly owned subsidiary of ZumaBeachEntertainment,Inc.and operate as a professional sportsleaguewithin theUnitedStates. The Company aims to buildacomprehensiveentertainmentlibrary that meets and exceedstheconsumers' needsand interestsfor high quality,captivatingentertainment. TheCompany looksforward to buildingW.A.R. into aprofitable sportsentertainmentproduct that generatesstrong profitsfrom variousrevenue streamsthat will include ticketsales,licensing andmerchandising andbroadcast revenue.